Comparing two brokers is seldom an easy task. In this article, we will compare FOREX.com vs OANDA two forex brokers in terms of security, fees, investment options, etc. Both Oanda & FOREX.com are prominent global fx brokerages that welcome US clients looking to trade in the massive forex market. Because of rigorous rules, most leading online forex brokers do not allow clients from the United States. Because of this, anybody residing in the United States who wants to participate in the forex market should read this review carefully.
Account Types and Features
Users can trade more than 70 currency pairs, as well as CFDs, bonds, rare metals, and indices, with OANDA. Customers from the United States are unable to trade CFDs or rare metals. OANDA is well-regulated in several regions and provides two types of accounts:
Standard: Standard account type provides users with a choice of four trading platforms as well as a comprehensive set of analytical tools. There is no requirement for a minimum deposit, and users will have access to institutional-grade executing capabilities.
Premium: Premium account type requires a minimum deposit of $20,000 and includes all of the benefits of the former account, as well as limitless wire transfers, a specialized relationship manager, and priority service queues.
More than 80 currency pairings, as well as spot gold and silver, are available to trade on FOREX.com. Users can create an account via FOREX.com’s FuturesOnline partner to buy and sell futures & options on futures. FOREX.com offers three different types of accounts:
Standard account: The standard account has zero commissions & provides attractive spreads. It also offers the use of MetaTrader 4 and MetaTrader 5 platforms in addition to the broker’s own platforms, allowing users to save up to 18% on their trading costs.
Trading spreads as narrow as 0.2 pips on EUR/USD are available with this account, but users must pay an extra $5 fee every 100,000 base currency units. This sort of account does not have a MetaTrader 4 or a MetaTrader 5 option.
STP Pro account: The broker’s premium account demands a $25,000 minimum deposit as well as a trading volume of 100,000 base units. STP Pro account allows users to access an ECN (electronic communications network) and Level 2 quotes, but it does not let users trade on the MetaTrader 4 or MetaTrader 5 platforms.
FOREX.com vs OANDA – Fees
The bid/offer or trading spread is the most common type of fx fees and commissions. The smaller the user’s costs, the lower the trading spread. Leading currency pairings, have tighter dealing spreads compared to less liquid pairs like crosses & exotic currency pairs. In terms of commissions and fees, the two brokers have pretty similar pricing.
Oanda provides two types of accounts, each with its own price structure:
Spread-only account: With a spread-only account, the sole commission users pay is the dealing spread. Regarding EUR/USD currency pair, spreads for this account type account begin at 1.4 pips.
Account with core pricing and commissions: This account type takes the dealing spread as well, however it is much tighter than the former account type.
Users pay a predetermined commission for each transaction in addition to the lower spread, so the total cost is the spread + commission. Core dealing spreads begin at 0 pip, with a $50 commission fee for every 1,000,000 base currency units.
Oanda imposes a 10-base currency unit charge for accounts that have been passive for a year, and also the regular rollover charges for FX positions held nightly, in addition to the trading expenses mentioned previously.
Standard account: Dynamic dealing spreads regarding EUR/USD begins at 1 pip.
Commission account: Charges a fixed $5 for every 100,000 units of the base currency, with a lower dealing spread, which begins at 0.2 pips.
STP Pro account: STP Pro account is designed for professionals and requires a minimum deposit of $25,000 to start. It also has Level 2 pricing & attractive dealing spreads, with EUR/USD spreads beginning at 0.1 of a pip.
FOREX.com’s accounts have somewhat better trading spreads compared to Oanda’s accounts.
FOREX.com vs OANDA – Trading From Mobile
The broker’s mobile app includes both its own FxTrade and the renowned MT4 (MetaTrader 4) platform. Users may trade all of OANDA’s currency pairings using these applications, which are accessible via Google Play and App Store. A news feed, comprehensive charting capabilities, a myriad of technical indicators, as well as trading instruments are also included.
The broker’s app, which also includes a trading performance instrument, allows users to manage their holdings and get mobile alerts. This tool allows users to look back on their trading activities and analyze them by item, profit/loss, success rate, and risk-to-reward percentage.
Numerous forex specialists recommend FOREX.com’s mobile app, which is accessible via Google Play and App Store. Users may get the free MetaTrader 4 and 5 mobile trading application, which comes with all of the sophisticated features featured on that renowned 3rd-party platform.
The application also allows users to create real-time order notifications in addition to comprehensive charts and technical analysis capabilities. Risk mitigation instruments, integrated capital management, a Reuters update feed, and economic calendars are all included. Users may also customize the navigation bar as well as the dashboard, and also create watchlists and get notifications. Users may place trailing stop & conditional orders such as OCO (one cancels the other) orders in addition to the market as well as limit orders.
FOREX.com beats Oanda in this area due to its capacity to accept conditional orders, its Reuters updates feed, and the fact that it offers both MT4 and MT5 platforms to users.
FOREX.com vs OANDA – Simplicity
For newbies, and also any trader looking to seize a trading opportunity or exit a bad position quickly, ease of use is critical. These brokers have a simple desktop, online, and mobile interfaces, so users must choose which is ideal for them.
The broker’s award-winning platforms provide users with great execution, trader analysis, comprehensive charts, and a large variety of technical analysis instruments, among other things. Users may download the free MetaTrader 4 platform with all of its sophisticated features & EA (expert advisor) automation abilities in addition to the broker’s online, desktop, and mobile platforms. Users may also use 100,000 digital base currency units to finance a demo fx or CFDs (contracts for difference) account.
Both its own platform and MetaTrader 4/5 platforms are offered by FOREX.com They are both simple to understand and operate. The broker also offers the opportunity of establishing a demo account to evaluate the platform, exercise trading, and test techniques.
Both OANDA and FOREX.com have unique trading systems that are simple to understand and operate. Users may download & use the MetaTrader 4/5 platforms on FOREX.com, as well as the MetaTrader 4 platform on OANDA. FOREX.com wins by a hair because it includes MetaTrader 5.
Overall Winner: FOREX.com
FOREX.com is a well-known broker that offers FX and CFD traders all around the world a great trading environment. It provides a diverse set of markets and a comprehensive set of proprietary platforms, as well as access to MetaTrader.
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